An independent investigation has been launched into the events that led up to Tasman District Council’s decision-making process over the Waimea dam, while a final decision has been made on how to fund the resulting overspend at a recent council meeting.
Council chief executive Janine Dowding says, “The cost overruns have been hugely disappointing. If we could have better anticipated them, then we need to learn from that. Those lessons would likely be valuable for other large Tasman projects as well as districts that are looking at water security solutions.”
The review will focus on the quality of the information and advice provided to the project governance board and the council up until November 2018 when the TDC made the final decision to proceed with the dam.
The investigation, estimated to take three months, will be carried out under the oversight of the Audit and Risk Committee. The investigation does not change the council’s contractual obligations relating to the dam project.
How to fund the overspend has been the subject of debate for many months, with TDC now deciding that residential ratepayers will pay an average cost of $5 a year for five years. This decision falls under Revised Option A. It means some of the council debt and all irrigator debt to fund the overruns will be held in Waimea Water Ltd (WWL), a joint venture company of the Council and Waimea Irrigators Ltd (WIL). Part of the interest on that debt will be paid through WWL water charges to the council, and the rest by water charges to Irrigators through WIL. The cost of the dam is currently coming in at $158.4 million, up from $129.4 million, after several oversights and blunders along the way.